Sajan, Inc. (OTCQB: SAJA), a provider of global language services
and translation management software, today reported financial
results for the quarter and fiscal year ended December 31, 2012.
Revenues for the quarter ended December 31, 2012 were $5.2
million, which represented a slight increase of 2 percent over
revenues for the quarter ended December 31, 2011 of $5.1 million.
The Company reported a net loss for the fourth quarter of 2012 of
approximately $39,000, or $0.00 per share, compared to net income
of approximately $226,000, or $0.01 per share, for the same quarter
last year. Financial results included non-cash expense related to
stock options of approximately $57,000, or $0.00 per share, in the
three months ended December 31, 2012 compared to approximately
$59,000, or $0.00 per share, in the three months ended December 31,
2011.
Revenues for the year ended December 31, 2012 were $20.5
million, which represented a decrease of 2 percent from revenues
for the same period in 2011 of $20.9 million. Net loss for the year
ended December 31, 2012 was approximately $1,000,000, or $0.07 per
share, compared to net income of approximately $67,000, or $0.01
per share, for the same period last year. Financial results for the
year included non-cash expense related to stock options of
approximately $179,000, or $0.02 per share, in the year ended
December 31, 2012 compared to approximately $221,000, or $0.01 per
share, in the year ended December 31, 2011.
The results for the fourth quarter and year ended December 31,
2011 included a gain on the sale of patents of approximately
$550,000 and approximately $95,000 of non-recurring costs
associated with the acquisition and integration of New Global.
"Sajan has enjoyed very nice annual growth for many years until
the first quarter of 2012, which started with some unforeseen
challenges and a Q1 loss. I could not be happier with our team's
ability to grow positive adjusted EBITDA each quarter thereafter
and close the year with positive adjusted EBITDA of $306,000 for
the fourth quarter of fiscal 2012 and $109,000 for full fiscal
2012. Based on our progress we have a very optimistic outlook for
the year ahead," noted Sajan CEO Shannon Zimmerman. See the
Non-GAAP Financial Measures section below for detail on the
calculation of Adjusted EBITDA.
Three Months Ended Twelve Months Ended
Adjusted EBITDA December December December December
31, 31 31, 31
2012 2011 2012 2011
---------- ---------- ----------- ----------
Net loss $ (39,000) $ 226,000 $(1,052,000) $ 67,000
Interest expense 28,000 18,000 99,000 73,000
Income taxes 24,000 12,000 58,000 12,000
Depreciation and amortization 236,000 195,000 825,000 748,000
Stock-based compensation 57,000 59,000 179,000 242,000
---------- ---------- ----------- ----------
Adjusted EBITDA $ 306,000 $ 510,000 $ 109,000 $1,142,000
Conference Call Details The company's
investors will have the opportunity to listen to management's
discussion of its business operations, financial results and growth
strategies on a conference call at 10:30 a.m. (Central time) on
February 28, 2013. The company invites all those interested to join
the call by dialing 1-888-469-1336 and entering access code
7540313. For those who cannot listen to the live broadcast, a
replay will be available shortly after the call and until 11:59
p.m. CT on March 8, 2013 by dialing 1-866-431-2792.
About Sajan
Sajan is a leading provider of global language translation and
localization services, helping clients around the world expand
seamlessly into any global market. The foundation of our solution
is our industry-leading language translation management system
technology, GCMS™, which provides process automation and innovative
multilingual content reuse to deliver schedule predictability,
higher quality and cost efficiencies to our clients. By working
closely with our clients, Sajan's experienced teams of localization
professionals develop tailored solutions which provide flexibility
to any large or small business that truly desires to "think
globally, but act locally." Based in the United States, we also
have offices in Ireland, Spain and Singapore. Sajan is publicly
traded under the symbol SAJA. Learn more about Sajan at
www.sajan.com.
Non-GAAP Financial Measure We calculate
Adjusted EBITDA by taking net income calculated in accordance with
GAAP, and adding interest expense, income taxes, depreciation and
amortization, and stock-based compensation. We believe that this
non-GAAP measure of financial results provides useful information
to management and investors regarding certain financial and
business trends relating to our financial condition and results of
operations. Our management uses this non-GAAP measure to compare
our performance to that of prior periods for trend analyses, for
purposes of determining management incentive compensation, and for
budgeting and planning purposes. This measure is used in monthly
financial reports prepared for management and our board of
directors. We believe that the use of this non-GAAP financial
measure provides an additional tool for investors to use in
evaluating ongoing operating results and trends and in comparing
our financial measures with other companies, many of which present
similar non-GAAP financial measures to investors.
Our management does not consider these non-GAAP measures in
isolation or as an alternative to financial measures determined in
accordance with GAAP. The principal limitation of this non-GAAP
financial measure is that it excludes significant expenses and
income that are required by GAAP to be recorded in our consolidated
financial statements. In addition, it is subject to inherent
limitations as it reflects the exercise of judgments by management
about which expenses and income are excluded or included in
determining this non-GAAP financial measure. In order to compensate
for these limitations, management presents non-GAAP financial
measures in connection with GAAP results. We urge investors to
review the reconciliation of our non-GAAP financial measures to the
comparable GAAP financial measures and not to rely on any single
financial measure to evaluate our business.
Forward-Looking Statements The Private
Securities Litigation Reform Act of 1995 provides a safe harbor for
certain forward-looking statements. The Company's Annual Report on
Form 10-K, its Quarterly Report on Form 10-Q and other filings with
the Securities and Exchange Commission, the Company's press
releases and oral statements made with the approval of an
authorized executive officer, contain forward-looking statements
that reflect the Company's current views with respect to future
events and financial performance. These forward-looking statements
are subject to certain risks and uncertainties that could cause
actual results to differ materially from historical results or
those anticipated. The words "aim," "believe," "expect,"
"anticipate," "intend," "estimate" and other expressions that
indicate future events and trends identify forward-looking
statements. Actual future results and trends may differ materially
from historical results or those anticipated depending on a variety
of factors, including, but not limited to those set forth in the
Company's Annual Report on Form 10-K for the year ended December
31, 2011 filed with the Securities and Exchange Commission on March
30, 2012, under the heading "Item 1A. Risk Factors". The Company
does not undertake any obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise.
Sajan, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
Three months ended
December 31, Year ended December 31,
------------------------ ------------------------
2012 2011 2012 2011
----------- ----------- ----------- -----------
Revenues $ 5,179,557 $ 5,087,868 $20,511,176 $20,904,311
Operating Costs:
Cost of revenues
(exclusive of
depreciation and
amortization) 3,351,900 3,116,819 13,298,987 12,467,302
Sales and marketing 601,293 636,601 2,415,436 2,545,309
Research and development 145,259 386,815 1,093,582 1,622,564
General and
administrative 913,666 1,054,057 3,837,265 3,944,530
Depreciation and
amortization 236,011 194,719 825,092 747,672
----------- ----------- ----------- -----------
Loss from Operations (68,572) (301,144) (959,186) (423,066)
Other income (expense),
net 53,261 538,671 (35,625) 502,053
----------- ----------- ----------- -----------
(15,311) 237,527 (994,811) 78,987
Income (loss) before
income taxes
Income tax expense (23,928) (12,000) (57,503) (12,000)
----------- ----------- ----------- -----------
Net income (loss) $ (39,239) $ 225,527 $(1,052,314) $ 66,987
=========== =========== =========== ===========
Income (loss) per common
share - basic & diluted $ 0.00 $ 0.01 $ (0.06) $ 0.00
----------- ----------- ----------- -----------
Weighted average shares
outstanding - basic 16,255,546 16,144,944 16,201,587 16,051,529
=========== =========== =========== ===========
Weighted average shares
outstanding - diluted 16,255,546 16,434,755 16,201,587 16,341,340
=========== =========== =========== ===========
Sajan, Inc. and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
December 31, December 31,
2012 2011
---------------- ----------------
Assets
Current assets
Cash and cash equivalents $ 892,939 $ 1,763,249
Accounts receivables, net of allowance
of $15,000 3,192,337 3,501,898
Unbilled revenue 1,015,429 823,617
Other current assets 492,854 469,974
---------------- ----------------
Total current assets 5,593,559 6,558,738
Property and equipment, net 805,284 758,440
Other assets, net 897,534 1,100,614
---------------- ----------------
Total assets $ 7,296,377 $ 8,417,792
================ ================
Liabilities and Stockholders' Equity
Current liabilities
Payables $ 2,501,772 $ 2,507,490
Note payable - related party 750,000 750,000
Line of credit 400,000 0
Other current liabilities 1,434,229 1,366,333
---------------- ----------------
Total current liabilities 5,086,001 4,623,823
Long-term liabilities 7,549 788,528
---------------- ----------------
Total liabilities 5,093,550 5,412,351
---------------- ----------------
Stockholders' equity 2,202,827 3,005,441
---------------- ----------------
Total liabilities and stockholders'
equity $ 7,296,377 $ 8,417,792
================ ================
Contact: Shannon Zimmerman Chief Executive Officer/Chief
Financial Officer email: szimmerman@sajan.com phone:
715-426-9505
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